Fold (NASDAQ:FLD) reported lower second-quarter revenue and a wider adjusted EBITDA loss as lower Bitcoin prices weighed on customer transaction activity and engagement, while the company continued investing in credit, banking and rewards infrastructure intended to broaden its business beyond payments.
Revenue for the second quarter of 2026 was $6.1 million, down 26% from a year earlier. Net loss was $9.7 million, compared with net income of $13.4 million in the prior-year period. Adjusted EBITDA was negative $5.5 million, versus negative $4.7 million a year earlier.
Building beyond transaction revenue
Chairman and CEO Will Reeves said Fold is seeking to evolve from a business primarily driven by payment transactions, card products, merchant offers and exchange volumes into a broader financial-services platform. The company plans to add services designed to encourage customers to deposit and hold assets on the Fold platform.
Reeves said the strategy is intended to enable Fold to participate in deposit economics, earn yield on customer assets held on the platform and use that yield to support rewards. Management believes the approach could create more recurring revenue and reduce the company’s reliance on transaction volumes, which have been sensitive to Bitcoin-market conditions.
Fold highlighted its partnership with Lead Bank as a foundation for expanded banking capabilities and participation in deposit economics. Reeves also said the company has been developing a proprietary “bank-grade” core ledger for a multi-asset platform.
While Fold continues to view Bitcoin as a strategic long-term asset, Reeves said the company plans to serve a broader market than its historically Bitcoin-native customer base. He said Fold intends to focus on dollars and Bitcoin rather than expanding its core offering around other crypto assets, citing customer interest in cash back and Bitcoin rewards.
Credit card early access and planned expansion
Fold said more than 2,000 customers are participating in early access for its credit card. Management said the program was designed to validate underwriting, fraud systems, servicing, financing and customer experience before a broader rollout.
Reeves said interchange and lending economics have met or exceeded management’s expectations and that the card’s per-swipe economics are currently profitable. He also said transactions per user increased fourfold from the point customers begin using the card through several months of participation, while spending per user has outpaced company projections.
The company has more than 80,000 people on its credit-card waitlist, according to Reeves. Fold also sees potential card demand from its existing monthly transacting users and from customers reached through its distribution channels.
Management said the card is currently funded entirely from Fold’s balance sheet. Repass said the company does not currently need a third-party financing vehicle, but expects to add strategic financing partners as receivables grow. Reeves said financing capacity remains the principal limitation on the pace of scaling the card program.
Fold plans to widen credit-card access alongside product launches later in the summer, management said. Reeves added that the company has refined its underwriting process after initially applying very strict standards during early access.
Debt reduction and cost actions
During the quarter, Fold eliminated $20 million of Bitcoin-backed debt under its facility with Two Prime. Repass said the move will reduce monthly interest expense by nearly $145,000 and leave the company with an additional $25 million of unrestricted capital for business use.
The debt repayment was intended to reduce treasury volatility and improve financial flexibility, according to management. Fold also said it has begun initiatives to lower operating costs, including eliminating certain vendors and contractors that supported investments made over the past year.
“The bulk of the investments are done,” Reeves said in closing remarks, referring to the company’s infrastructure and product-development efforts. He said Fold expects to provide further details on its new products and broader strategy during the third quarter.
Distribution and employee bonus program
Fold also discussed its Bitcoin Gift Card distribution strategy, including placement through Kroger and TikTok Shop. Reeves said TikTok Shop has produced some of the strongest early momentum among the company’s distribution channels despite what management characterized as a depressed Bitcoin market.
According to Reeves, content created by TikTok users around the gift card has generated views and helped bring customers to Fold. He said the company is using results from new distribution channels to identify potential future partners and reach customers interested in personal finance and rewards, not solely Bitcoin.
Separately, Fold said it is receiving positive feedback from its Employee Bitcoin Bonus program, which is being used by companies including Anchor, Steak ’n Shake and Simple Mining for recruiting and retention. Management said its current focus is on customer experience, scalable onboarding and developing evidence of the program’s impact before pursuing broader integrations with paycheck and benefits portals.
About Fold (NASDAQ:FLD)
Fold, trading under the ticker FLD on the NASDAQ, is a financial technology company specializing in bitcoin rewards and cryptocurrency-based consumer products. The company’s core offering enables users to earn bitcoin on everyday purchases through a prepaid Visa debit card, converting traditional currency transactions into bitcoin rewards at no extra cost. By partnering with major payment networks and merchant platforms, Fold aims to bridge the gap between mainstream spending and digital asset adoption.
Beyond the debit card, Fold offers a mobile application that integrates with the Bitcoin Lightning Network to facilitate faster and more cost-efficient transactions.
